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81. Securing China’s Belt and Road Initiative

Author:
Zi Yang
Publication Date:
11-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
The November 23 attack on the Chinese consulate in Karachi, Pakistan, is the latest sign that anti-Chinese sentiment may be taking root in countries that have received massive inflows of investment from China’s Belt and Road Initiative. USIP’s new Special Report provides an overview of the different security arrangements China is using to protect its overseas investments and workers, and examines how the Belt and Road Initiative is spurring the rapid growth of China’s domestic private security industry.
Topic:
Security, Infrastructure, Belt and Road Initiative (BRI), and Peace
Political Geography:
Pakistan, China, South Asia, and Asia

82. Game of Institutional Balancing: China, the AIIB, and the Future of Global Governance

Author:
Kai He and Huiyun Feng
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a “charm offensive” by China towards multilateral institutions and existing global financial governance. If the rise of China is inevitable, what will the future world look like and what should other countries be prepared for? Borrowing insights from institutional balancing theory and role theory in foreign policy analysis, this project introduces a “leadership transition” framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies, i.e., inclusive institutional balancing, exclusive institutional balancing, and inter-institutional balancing to compete for influence and interest in the process of establishing the AIIB. A state’s role identity as a “leader,” a “challenger,” or a “follower” will shape its policy choices regarding different institutional balancing strategies in the process of leadership transition in global governance. Institutional balancing is a new form of balancing among states in the future of global governance. China’s institutional rise in global governance might be more peaceful than widely predicted.
Topic:
Regional Cooperation, Infrastructure, Governance, and Economic Cooperation
Political Geography:
United States, China, and Asia

83. What Is the U.S. Trade and Development Agency?

Author:
Daniel F. Runde and Romina Bandura
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The U.S. Trade and Development Agency (USTDA) is a small independent federal agency whose mission is to help American “companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.” USTDA links American businesses to export opportunities in emerging markets by funding activities such as project preparation and partnership building in sectors including transportation, energy, and telecommunications. Since it was established 25 years ago, the agency has generated a total of $61 billion in U.S. exports and supported over 500,000 American jobs. In connecting American business to such opportunities, USTDA also links American technology’s best practices and ingenuity with U.S. trade and development policy priorities. USTDA is an instrument to enable American-led infrastructure development in emerging economies and, therefore, frequently sees increasing competition from government-backed Chinese firms and the challenge they can pose to American commercial engagement under the flag of One Belt, One Road (OBOR). OBOR is paving the way for Chinese engineering, procurement, and construction companies to prepare and develop infrastructure projects in OBOR countries in a way that favors Chinese standards, thereby exerting significant pressure to select Chinese suppliers. This creates a potentially vicious cycle—the more China builds, the faster their standards become the international norm, and, ultimately, this cycle could foreclose export opportunities for U.S. businesses and harm American competitiveness in global infrastructure development. U.S. exporters are increasingly requesting USTDA intervention at the pivotal, early stages of a project’s development, to compete in markets, such as the OBOR countries, where they frequently face Chinese competition. Of note, 40 percent of USTDA’s activities in 2016 were in OBOR countries across South and Southeast Asia, Central Asia, the Middle East, and Africa. Although there are other agencies that may seem to do work similar to USTDA, there are various aspects that make it a unique agency. This paper provides a brief description of USTDA, its origin and evolution, the impact on the U.S. economy and its proactive collaboration across U.S agencies. Finally, it offers a set of recommendations for USTDA on how to improve its operations and strengthen its role in the developing world.
Topic:
Development, Energy Policy, Communications, Infrastructure, Trade, and Transportation
Political Geography:
Africa, United States, Middle East, Asia, and North America

84. Restoring the Eastern Mediterranean as a U.S. Strategic Anchor

Author:
Jon B. Alterman, Heather A Conley, and Donatienne Ray
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
U.S. strategy in the Eastern Mediterranean is long overdue for revision. Policies, priorities, and activities girded by U.S.-led alliance structures were developed to stabilize Europe and deter Soviet aggression at the dawn of the Cold War. Seventy years later, they are no longer fit for purpose. However, the region remains a linchpin for an array of vital U.S. interests. In the last decade alone, regional conflicts and state fragmentation have caused millions of migrants and internally displaced to flee their homes, creating one of the largest migration crises since World War II. The arrival of an unprecedented number of migrants has triggered political backlash and polarized domestic politics in Europe and in the Eastern Mediterranean. Many of the littoral states in the Eastern Mediterranean have faced destabilizing economic crises that have created deep political and strategic vulnerabilities. Significant natural gas deposits discovered off the coasts of Israel, Cyprus, and Egypt could boost regional economic prospects as a potential energy-producing region, but a divided Cyprus, historical animosities, as well as a lack of infrastructure connectivity hinder this regional economic potential.
Topic:
Imperialism, Military Strategy, Infrastructure, Fragile/Failed State, Military Intervention, and Conflict
Political Geography:
Africa, United States, Middle East, Israel, Egypt, Cyprus, and Mediterranean

85. Southeast Asia Financial Integration and Infrastructure Investment: What Role for the United States?

Author:
Murray Hiebert
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Issue Southeast Asia has come a long way since the devastating financial turmoil of 1997 and has set up mechanisms to avoid the next shock. But in case a future crisis hits, it would be useful for the U.S. government to say upfront if it would support International Monetary Fund (IMF) support. Some in the Trump administration have said they oppose IMF bailouts. The newest opportunity—and challenge—to Southeast Asia’s financial system is the bursting onto the scene of fintech firms. These companies are meeting the urgent needs of underserved populations. Yet their activities outstrip the ability of traditional regulators to govern their activities and protect consumers. China’s Belt and Road Initiative could play a mighty role in meeting infrastructure needs in Southeast Asia if it is done right. But so far Beijing has said little about what it envisions the impact of its projects to be. “Will that spending help people who need it most?” asks Jonathan Hillman of CSIS’ Reconnecting Asia Project. “Will it go into viable projects…? Will it help or hurt climate change?” “[I]n countries where public debt is already high, careful management of financing terms [for infrastructure projects] is critical,” IMF Managing Director Christine Lagarde said during a conference in Beijing. “This will protect both China and partner governments from entering into agreements that will cause financial difficulties in the future.”
Topic:
Infrastructure, Global Political Economy, Integration, and Economic Cooperation
Political Geography:
United States, China, Asia, and Southeast Asia

86. Rethinking Industrial Policy for the Data-driven Economy

Author:
Dan Ciuriak
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper reviews industrial policy in theory and historical practice. It makes the case for a fundamental reframing based on the centrality of data to the data-driven digital economy, the various roles that data plays in this economy (as a medium of digital transactions, as intangible capital and as infrastructure of a digitized economy), and the heightened scope for market failure in the data-driven economy. A number of points to guide the formation of industrial and innovation policy in the knowledge-based and data-driven digital economy are suggested. As part of their data strategies, countries should assess the market value of data generated in the exercise of public sector governance and data generated in Canadian public space; put in place procedures to capture data and regulate its capture; and use procurement to develop new capabilities in the private sector.
Topic:
Industrial Policy, Infrastructure, Governance, and Digital Economy
Political Geography:
Canada and North America

87. Demystifying the Indian Smart City: An Empirical Reading of the Smart Cities Mission

Author:
Persis Taraporevala
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
The newly elected federal Government of India (GoI) launched the Smart Cities Mission (SCM) in 2015 with the stated purpose of improving the governance and infrastructural deficiencies that plague Indian cities. Missing, however, in the pageantry of the new programme is a cohesive understanding of a smart city. While the government documentation repeatedly implies infinite liberty for cities to self-define their understanding of ‘smartness’, the actions demonstrate that there is a larger idea of ‘smartness’ that the federal government seeks to implement. It is at this disjunction, between the rhetoric and practice of the Mission, that this paper finds its core research question – ‘What constitutes a smart city in India?’ Through a detailed reading of the government documentation of the top 99 cities, the paper argues that the there is a profound chasm between the professed objectives of the Mission and the strategies enacted to achieve these objectives.
Topic:
Development, Government, Infrastructure, Social Policy, and Urban
Political Geography:
South Asia, India, and Asia

88. Officiating Urbanisation: What makes a settlement officially urban in India?

Author:
Bhanu Joshi and Kanhu Charan Pradhan
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
Financial incentives including government support grants for infrastructure creation, health and education development in many countries is contingent on where people live. In India, the allocation of critical government subsidies explicitly recognises urban population as a criterion for budgetary allocation. Yet, the fundamental question about what is an urban area and what does it entail to be recognised as an urban settlement in India remains understudied. This paper aims to understand the definitional paradigm of statutory towns in India. We create a novel dataset of all state laws in India on the constitution of urban local governments. We analyse the eligibility criteria that would qualify any area to become urban local bodies under the law in different states and find large variation among states. In our dataset, only fifteen of the twenty-seven states explicitly define and have laws on urban settlements. Within these fifteen states, we find that many small and transitional urban areas violate the eligibility criteria laid down by the state laws constituting them. We further find that states which do not provide statutory laws rely on executive fiat, i.e. it is the prerogative of the state government to declare the creation of a statutory town. What then becomes or “unbecomes” urban in these states is open to dispute. The full extent of this variation and reasons thereof can open up new avenues of scholarship.
Topic:
Government, Infrastructure, Urbanization, Budget, and Legislation
Political Geography:
South Asia, India, and Asia

89. The Japan-India Economic Partnership: A Politically Driven Process

Author:
Celine Pajon and Isabelle Saint-Mezard
Publication Date:
09-2018
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
In the last decade, the strengthening of the India-Japan strategic partnership has been primarily driven by geopolitical considerations, in an era of competing regional visions and influence. While bilateral relations have shown progress in terms of political values and interests, strategic convergence and military cooperation, their economic dimension has seemed to lag behind. While India has been one of the largest recipients of Japanese official development assistance (ODA) loans since 2003, it made up only 2.2% of Japan’s total overseas direct investment (ODI) flows in 2016. Moreover, the volume of bilateral trade has remained surprisingly modest. In other words, India and Japan still need to boost business links to give more substance to their bilateral partnership as well as support India’s robust and long-term development and economic growth, as Japan needs a strong democratic partner in Asia. The objective is highly political. Japan and India are eager to develop their partnership as a balancing act vis-à-vis China. If they are to fulfill their ambitious geopolitical visions, they also need to promote cooperation in third countries.
Topic:
Bilateral Relations, Infrastructure, Geopolitics, Economic Cooperation, and Economic Diplomacy
Political Geography:
Japan, India, and Asia

90. Building Confidence in the Cybersphere: A Path to Multilateral Progress

Author:
Nancy Gallagher and Theresa Hitchens
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Center for International and Security Studies at Maryland (CISSM)
Abstract:
As use of the Internet has become critical to global economic development and international security, there is near-unanimous agreement on the need for more international cooperation to increase stability and security in cyberspace. Several multilateral initiatives over the last five years have begun to spell out cooperative measures, norms of behavior, and transparency and confidence-building measures (TCBMs) that could help improve mutual cybersecurity. These efforts have been painstakingly slow, and some have stalled due to competing interests. Nonetheless, a United Nations (UN) Group of Governmental Experts (GGE) and the Organization for Cooperation and Security in Europe (OSCE) have achieved some high-level agreement on principles, norms, and “rules of the road” for national Internet activities and transnational cyber interactions. Their agreements include commitments to share more information, improve national protective capacities, cooperate on incident response, and restrain certain destabilizing state practices. Voluntary international agreements are worth little, unless states implement their commitments. So far, implementation has been crippled by vague language, national security considerations, complex relations between public and private actors in cyberspace, and privacy concerns. This is particularly true regarding the upfront sharing of information on threats and the willingness of participants to cooperate on incident investigations, including identifying perpetrators. With multilateral forums struggling to find a way forward with norm-setting and implementation, alternate pathways are needed to protect and build on what has been accomplished so far. Different strategies can help advance implementation of measures in the UN and OSCE agreements. Some commitments, such as establishing and sharing information about national points of contact, are best handled unilaterally or through bilateral or regional inter-governmental cooperation. Other objectives, such as protecting the core architecture and functions of the Internet that support trans-border critical infrastructure and underpin the global financial system, require a multi-stakeholder approach that includes not only governments but also private sector service providers, academic experts, and nongovernmental organizations. This paper compares what the GGE and OSCE norm-building processes have achieved so far and what disagreements have impeded these efforts. It identifies several priorities for cooperation identified by participants in both forums. It also proposes three practical projects related to these priorities that members of regional or global organizations might be able to work on together despite political tensions and philosophical disputes. The first would help state and non-state actors share information and communicate about various types of cybersecurity threats using a flexible and intuitive effects-based taxonomy to categorize cyber activity. The second would develop a more sophisticated way for state and non-state actors to assess the risks of different types of cyber incidents and the potential benefits of cooperation. The third would identify aspects of the Internet that might be considered the core of a public utility, worthy of special protection in their own right and for their support of trans-border critical infrastructure.
Topic:
International Cooperation, United Nations, Infrastructure, and Cybersecurity
Political Geography:
United States and Europe